SEC Ends Years-Long Battle with Ripple
The Securities and Exchange Commission has reached a controversial settlement with Ripple Labs, ending a legal battle that has stretched over four years. The deal would see Ripple pay $50 million to the SEC while recovering $75 million from a previously imposed $125 million fine, a move that has triggered strong internal backlash from one of the commission’s top officials.
The settlement also calls for the removal of an injunction that barred Ripple from future violations. Once the court approves the agreement, both Ripple and the SEC are expected to withdraw their appeals in higher courts, effectively closing a case that has shaped the landscape of U.S. crypto regulation since 2020.
Crenshaw Speaks Out Against Deal
SEC Commissioner Caroline Crenshaw issued a scathing statement condemning the settlement, calling it “a tremendous disservice” to the. Crenshaw, who was originally appointed by President Trump and renominated by President Biden, urged the court to reject the agreement outright.
“This is not a settlement I can support,” Crenshaw said. She warned that the move contributes to the “programmatic disassembly of the SEC’s crypto enforcement program” and accused the agency of fearing an unfavorable ruling from the appellate court.
A Legal Saga Since 2020
The SEC first filed its case against Ripple in December 2020, alleging the company and two executives had violated securities laws by raising $1.4 billion through the sale of its XRP crypto token. At the time, President Trump was still in office, and Ripple’s prominence in the crypto industry was growing rapidly.
In a landmark 2023 ruling, a federal judge determined that XRP tokens sold to the general public did not qualify as securities, though she upheld a $125 million fine for the tokens sold to institutional investors. The SEC appealed that ruling but then dropped its appeal in March 2025, setting the stage for this week’s proposed settlement.
Political Connections Under Scrutiny
The deal has raised eyebrows due to Ripple’s apparent political ties. Sources told ABC News that Ripple donated $5 million to Trump’s inaugural committee. In January 2025, Ripple CEO Brad Garlinghouse shared a photo of himself with Trump, and he later attended a White House-hosted “crypto summit.”
Garlinghouse has remained defiant throughout the case and praised the outcome. He previously stated that the resolution was “a victory — and a long overdue surrender by the SEC,” framing the settlement as a turning point in the agency’s approach to crypto regulation.
Concerns Over Enforcement Retreat
In her statement, Crenshaw expressed concern that the SEC’s motivation for settling stemmed from fears that the courts might affirm Ripple’s legal stance. “Our agency is, I fear, worried that the appellate court would issue a sound ruling that agreed with the legal arguments already laid out by the Commission,” she wrote.
She added that such a ruling could “undermine the agency’s new apparent mission of dismantling our crypto enforcement program and eroding investor protections.” Her warning echoes broader concerns that the SEC may be scaling back its oversight as the political climate around cryptocurrency continues to evolve.
What Comes Next for Ripple and the SEC
Pending court approval, Ripple will regain control of the $75 million held in escrow and the injunction against it will be dissolved. The legal conclusion frees Ripple from some of the regulatory shadows that have followed the company for years and positions it to further expand in the U.S. market.
For the SEC, however, the case highlights growing internal division over how to manage cryptocurrency enforcement. Crenshaw’s comments mark a rare public rebuke from within the commission and suggest that debate over crypto regulation is far from over.
A Defining Moment in Crypto Regulation
The Ripple case has become a defining legal battle in the United States’ regulation of digital assets. Its outcome may influence how other crypto firms interact with the SEC and whether the agency chooses to pursue enforcement actions with the same vigor in the future.
As Ripple prepares to move forward and the SEC absorbs the backlash, the spotlight now shifts to how the courts and lawmakers respond to a settlement that could reshape the future of crypto oversight in Washington.
